Okay, to follow up with my post #10, I used SDM to make and format the partitions, however, Win7 (in computer management) saw the two partitions, but thru file explorer I could not install CHDK because windows could not recognize the file system as formated by SDM.
Whenever I put the SDHC card into the reader, windows always asked if I wanted to format the card, so I allowed it to since I wasn't having any success getting past this point (of installing CHDK). It formatted the 1st partition, then I could read and write to the 2MB partition. So I used cardTricks to install CHDK successfully!